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WordPress Shortcode. Calanth Follow. Published in: Full Name Comment goes here. Are you sure you want to Yes No. Be the first to like this. No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. No notes for slide. Dynamic business law 4th edition kubasek solutions manual 1. It also provides a framework that allows students to engage with ethics and social responsibility material.
What are business ethics and the social responsibility of business? How are business law and business ethics related? How can we use the WPH framework for ethical business decisions?
For each chapter, consider asking students to relate current news items to material from the chapter. In addition to ideas students come up with on their own, consider weaving in news stories provided by the textbook publisher. Ethics is the study and practice of decisions about what is good or right. An example of a business ethics question: Is the company in the Case Opener doing the right thing when it attempts to reduce the costs of advertising by not listing all possible complications of the medicine for the consumer?
As explained later in this chapter there are several ways of evaluating an ethical decision, for example, the Golden Rule, the Public Disclosure test, or the Universalization Test.
One reasonable answer, thus, is can be provided by the Golden Rule. An ethical dilemma is a problem about what a firm should do for which no clear, right direction is available. The social responsibility of business consists of the expectations that the community imposes on firms doing business inside its borders.
Teaching tip: How are the concepts of ethics and social responsibility different? Do they overlap? The legality of the decision is the minimal standard that must be met. United States of America et al. Andrew Hagerty v. Cyberonics, Inc. Ethics presumes obedience to law. The WPH framework provides practical steps for responding to an ethical dilemma. Whom would the decision affect? Chapter 02 - Business Ethics provides a useful example of how multiple stakeholders are affected by a business decision.
The stakeholders include in this example include the motor suppliers, the CEO, management, and depending on the motor supplier chosen, the workers for the motor suppliers that are not transacted with. Purpose—What are the ultimate purposes of the decision? How do we make ethical decisions? Our actions are in the open rather than hidden. In this case, Tyson Foods was paying bribes to pass quality inspections.
But, foods that are low in quality have to potential to cause diseases, like salmonella, in consumers. Thus, by circumventing safety inspections, Tyson Foods was endangering the health of their consumers. This section provides an example of the ethical dilemmas that have been created in the internet age.
Specifically, the dilemma consists of weighing the rights of news agencies to protect the information they gather against the right of the government to improve national security, thereby protecting U. Choose a current ethical dilemma from the newspaper and ask students to apply the WPH framework to the dilemma. Ask students how specific theories of business ethics are integrated into the WPH framework.
For more information about theories of business ethics, go to these web sites: Philosophy and ethics on the web: Kallman and John P. Do a firm's ethical responsibilities extend beyond maximization of profits? For further arguments on both sides of the issue, see: The Story of Two Biotech CEOs Elizabeth Holmes is a year-old billionaire whose company, Theranos, is developing a technique for doing medical diagnostic work with the draw of a single drop of blood. The objective is to create a low-priced, less painful alternative to the large blood draws that have been the traditional way to do medical diagnoses.
Holmes is designing and producing a product that is so cheap that a person can get a cholesterol test for the price of an egg McMuffin. She proudly says that she will not raise prices and 5. Chapter 02 - Business Ethics will not deny access to this new technology to people in need. In addition, the FDA announced that the Theranos innovation had not been adequately peer reviewed and was not an approved blood collection device. He is a year older than Ms.
In interviews, he explained that he probably should have raised the price even more because those who needed the drug would be willing to pay even more because it was so valuable for their health. Shkreli points out that his primary responsibility is to make profits for those who own Turning.
On December 17, , Shkreli was arrested on charges of securities fraud for allegedly using assets from a biotech company he started to pay off unrelated business debts. To make up for this loss, Cyberonics began allegedly encouraging its salespeople to sell replacement devices to patients who did not need them. Cyberonics employee Andrew Hagerty blew the whistle on Cyberonic's acts, alleging that Cyberonics was violating the False Claims Act by knowingly submitting false claims to the United States government.
The court ruled in favor of Cyberonics, dismissing its FCA claims. Chapter 02 - Business Ethics Answers to the questions Critical Thinking One of the facts that would be useful to know in this context is the effect size of the fraudulent actions of the salespeople; that is, how many individuals were negatively affected by the dishonest sales practices and how negatively were these people affected? Another fact that could affect one's perception of the judgment is the extent to which the company's executives were involved in the fraudulent sales.
If the company simply set quotas and the salespeople took unethical actions to meet these quotas, then that is a very different thing then direct orders from executives to engage in unethical behavior. There are several actions that many people find highly unethical that are also entirely legal, such as driving a high-emission vehicle or smoking cigarettes at home around children.
There's an argument to be made that even though Cyberonics might not have broken any laws, it was still acting unethically by providing false information to patients and essentially tricking customers into buying things they didn't need. If the Cyberonics salespeople had used the WPH framework to ask themselves why they were making fraudulent claims and who it affected, their decisions may have been more ethical.
Use these questions as models: Evaluate reasoning. What does each of these methods fail to take into account?
How important is that omission to the determination of whether you should accept the reasoning? Is it well written? If so, what?